contingency approach to management contr

Contingency approach in Management Control System : 

Contingency approach in Management Control System By Tarun Gupta 07bs4596

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Type of technology, environment, and other contextual factors determine what is the effective structure Reactive Approach “If then”- Relationship

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1950s and 1960s need for considering environmental contingencies. Fred Fielder, in the 1960s and 1970s, was an early pioneer in this area NASA, ISRO etc used this system most because there is huge uncertainties attached to each mission

Need for Contingency approach for Management Control System : 

Need for Contingency approach for Management Control System Cultural differences Customer diversity Employee diversity Different accounting standards legal regulations Technology Organizational Structure Environment

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Indian Railways Konkan Railways have different timetable for Monsoon Season. Railway, in order to avoid rush in long distance train during summer holidays railways attach additional bogies according to the reservation status. Tatkal Seva in daily long distance long trains. Reduce AC fares to avoid competition from airlines.

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Kodak Goes Digital Changed its main Business Photographic Film making to Digital photography after realizing that their profit is declining day by day Company’s business had been significantly affected by the quicker than expected shift of consumer to the film less digital cameras

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Case Study Rise and fall of Gopal maji Gopalji maji was divisional manager of Howrah division of Best Keen and Johnson company. In order to make this company profitable he reduced working strength by 25 % and modernize machinery to get good quality and quantity. In second year he reduce the consumption of raw material and enhancement of labor productivity. Company made huge profits. In Third year he reduce the planning, purchase & design department by 30% expecting huge profits. But he fail to perceive the environmental change i.e. liberalization occur. Many new manufacturer come with new products. Many orders come into his way he accepted all of them. But many staff member resigned on their own. He can not meet the dead line and company just broke up. In fourth year order started drying up and company made huge losses.

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THANK YOU

Case Study : 

Case Study Rise and fall of Gopal maji Gopalji maji was divisional manager of Howrah division of Best Keen and Johnson company. In order to make this company profitable he reduced working strength by 25 % and modernize machinery to get good quality and quantity. In second year he reduce the consumption of raw material and enhancement of labor productivity. Company made huge profits. In Third year he reduce the planning, purchase & design department by 30% expecting huge profits. But he fail to perceive the environmental change i.e. liberalization occur. Many new manufacturer come with new products. Many orders come into his way he accepted all of them. But many staff member resigned on their own. He can not meet the dead line and company just broke up. In fourth year order started drying up and company made huge losses.